China banned the creation of new ICO crypto-currency and ordered to return the money for the created one

POSTER:computer news || CHINA BANNED THE CREATION OF NEW ICO CRYPTO-CURRENCY AND ORDERED TO RETURN THE MONEY FOR THE CREATED ONE

DATE:2017-09-06

On Monday, the People's Bank of China issued a decree prohibiting all types of ICO (initial coin offerings, initial coin placement). Organizers of all already held / completed shares are obliged to return to customers funds received for already sold electronic tokens. All financial institutions, banks and others are required to block operations using crypto currency. It is not forbidden to extract it yet, but it is forbidden to use it for calculations on the territory of a huge continental country. Those who violate this order are waiting for the heavenly punishment.

The Chinese regulator quite reasonably stopped the process of uncontrolled growth of incomprehensible financial flows past traditional financial institutions. Crypto currency is not backed up, and upon reaching a certain volume, a real banking system can collapse. Over the past year, with the help of ICO, $ 1.6 billion was raised. By July 18, in China, the initial placement of the tokens had completed 65 sites and another 43 platforms continued to raise funds.

Closed platforms collected 2.6 billion yuan, which is approximately $ 398 million. Money for "air" was exchanged for 105 thousand Chinese citizens. Now they all need to get them back. How this should happen is not very clear, but the process will be fascinating for both the organizers of the ICO, and for the participants. Well, there will be an extra reason to settle everything at the legislative level first, and then start civilized work.

The rate of major crypto-currencies on the eve of the announcement of the Bank's ban on ICO began to fall even on Saturday. Obviously, there were not any leaks (for a note to those who think they have a hand on the pulse). On Monday, the cost of Bitcoin fell 11.4% to $ 4,326.75, while Ethereum fell more than 16%. At the same time, it is impossible to exclude the possibility of re-authorization of ICO in China.